Will the new mining law help Uganda or it will dissuade investors from the country?
While an increase in commodity prices is good news for mining companies and investors, there is always the risk that favourable market conditions will lead to resource nationalism. For example, according to a recent Fitch Solutions report on nickel, an upward trend in the metal’s price raises the likelihood of mining royalty increases in order to profit from higher prices. In recent years, countries such as Tanzania have enacted new mining regulations to ensure that local businesses can reap greater benefits from their mineral resources. While the intention is noble,…
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